Justin Fox, author of The Myth of the Rational Market, talks about the ideas in his book with EconTalk host Russ Roberts. Fox traces the history of the application of math and economics to finance, particularly to the question of how markets and prices process information, the so-called efficient markets hypothesis in its various forms. The conversation includes discussions of systemic risk, the current financial crisis and the lessons for policy reform.See related links and listen to the podcast here.
Tuesday, July 14, 2009
Justin Fox on the Rationality of Markets